Sunday, 29 September 2013

So why should you be interested in Inovio as a current/potential shareholder?

Inovio is the most exciting, most
innovative company in both immune therapeutics and vaccine space. Just since
the last four years, Inovio has published more than 70 peer-reviewed journals
that's more productivity. The company has zero debt and a very clean balance
sheet and Roche’s upfront payment of $10 million allows Inovio to have full
cash run rate through the third quarter, end of third quarter of 2015, this is
most cash that this company has ever had.

‘We have the best innovative, most
productive platform out there and our partnership with Roche has started that
validation but our goal is to bring additional partnerships, additional
non-dilutive partner in funding. We have received over $50 million in
non-dilutive grants and contracts in the last four years, even prior to the
Roche deal of this year. And along the way we may partner out each of these
products during our developmental cycle’ said Dr. Joseph Kim, President and CEO.

Inovio has taken aggressive approach to
start planning for the Phase III studies already. And the company is working to
start other cancer targeted studies in cervical cancer as well as head and neck
cancer by early 2014. Inovio will also go for the orphan drug designation which
brings additional benefits to the product program. So Inovio is taking on
approach as a business strategy, a strategic approach to develop and really put
together a powerful vaccine and immune therapeutics development program.

Inovio is certainly looking to do some additional
partnerships. Roche was not the only one interested in 5150 or 1800 programs
and certainly there are additional advancing discussions for other partnership
interest for other lead programs in the company’s pipeline.

Inovio certainly has many of that
including in the field of cancer for 5150. The company is racing ahead to start
trial for their prostate cancer product with Roche and hopes to start Phase I
studies study by early part of 2014.

VGX-3100 is Inovio’s key, most advanced
program Phase II efficacy data by midyear. INO-1400 is a truly value driving
product as we see for Inovio. It's a therapeutic vaccine targeting the hTERT
and hTERT accounts for 85% of all cancers. So, if Inovio can develop this
successfully, this product 1400 has the potential to become a universal cancer
therapy. The company will start with their initial test in breast and lung
cancers and then expand to other cancer indications.

Inovio has been able to generate
best-in-class T-cell and antibody responses in these patients and they keep
pushing the envelope of the technical and scientific development of their technology
and efficacy results which is around the corner and mid year 2014 is going to
add additional validating value for all of their programs. And Inovio’s win-win
partnership with Roche is just the beginning. We expect additional corporate
partnerships for their other programs with the additional Big Pharma.

It's a fantastic deal; it's a win-win
deal for both Inovio and Roche. For Inovio it brings a validating partner to
the table and Inovio is licensing out two of their preclinical candidates, very
high value targets for prostate cancer and hepatitis B therapy.

For Roche they get to enjoy a foothold
into one of the most exciting immunotherapy and vaccine research and
development areas. It was a $10 million upfront deal, fully milestone, there
will be over $412 million in milestones and when the products are on the market,
up to double-digit percentage royalties. The milestones begin with Phase I,
Phase II and so on these are pretty standard royalty and milestone terms.